HONING THE COMPETITIVE SPIRIT

India is the fifth largest economy in the world, with a GDP of $3.2 trillion in 2023, and we have been growing at an average rate of 7.6 per cent in the past decade.

- Amit Kapoor

However, on closer examination, certain key indicators reveal a startling picture. India's GDP per capita, a true indicator of a nation's prosperity, is at $2,730 (Rs 2.3 lakh). It is much lower compared to our developing bloc peers, including Brazil ($11,350), China ($13,150), Vietnam ($4,620) and South Africa ($5,970). To look at a broader indicator of India's holistic well-being, our social progress ranks at 110 out of 169 countries in 2022; approximately five points below the global average score. Moreover, India's GDP per capita places the country at the 111th rank out of 164 countries assessed on social progress.

For India to attain its vision of becoming a $30 trillion economy, we will need to grow incrementally at a rate of 9.7 per cent. Achieving this would elevate India's GDP per capita to $18,000 (Rs 15 lakh) by 2047, at par with developed economies. India would need to harness the potential of its heterogeneous landscape at the state and district levels. This is important as many Indian states are larger than some of the countries in the world, not just in terms of population but also GDP. Bihar and Uttar Pradesh currently constitute 25 per cent of India's population, yet have the lowest per capita income in the country at $420 (Rs 40,000) and $698 (Rs 58,500) respectively. Therefore addressing regional disparities at the subnational level becomes important. We have extensive ground to cover, and there's too little time!

A captive market: India's sizeable population presents significant opportunities as an expansive market for demand.